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56 Operations for Radian. "Risk scoring has always been in place, but we're seeing many servicers changing their monitoring and identification of borrowers who may be at risk of default, incorporating more information about payment statistics." ompson echoed this point, explaining that Flagstar monitors loans for risk of default involving the use of an "early indicator risk model" that monitors (among other things) borrower payment activity. "If I'm a customer who normally pays on the fifth of the month, and today is the fifth, I'm considered less of a risk than a customer who normally pays a day early who hasn't paid by the fifth of the month," ompson said. "ose borrowers appear as high-risk in our model and are called earlier and/or more frequently." David Hughes, SVP of the Contact Center for RoundPoint Mortgage Servicing, told DS News, "Having borrower relief programs is wonderful but ultimately worthless if you haven't effectively informed your customers before it's too late to help. If we have waited until almost two months into delinquency, we've failed. We spend a great deal of resources keeping our borrowers informed of options well in advance of any problems." Hughes emphasized that the methods of borrower communication are just as important as ensuring that the outreach happens. It can also be a numbers game. "Reaching out to borrowers with just one or two methods isn't enough," Hughes said. "You have to offer multiple mediums of communications and education in order to be successful." is also requires servicers to recognize that borrowers have different needs and preferences for how they prefer those communications happen. Some prefer to interact solely through their screens and devices, while others need the human touch of actually speaking to a servicer representative. Hughes outlined six primary styles of communication that borrowers can benefit from: » Visual—Need to see it in print or on a screen. Graphics and images are particularly helpful. » Aural—Need to hear it, via a phone call or video. » Print—Need to write it down, take notes. » Tactile—Need to DIY, forget written instructions and just dive in. » Interactive—Need to discuss, dissect, and deliberate, preferably in groups. » Kinesthetic—Need to move, to act out the concept instead of reading about it. Hughes said that RoundPoint's servicing model includes as many of these mediums as possible when educating and communicating with borrowers. "is is when it pays to get creative and take advantage—proactively—of every available technology opportunity such as instructional help videos, webinars, chat, video chat, chatbots, infographics, and email, as well as time-tested methods like phone calls, mail, and even in-person meetings." Joe Chappell, EVP of Covius Settlement Services, told DS News that it's crucial that the various systems involved in tracking and servicing the loan can communicate accurately and efficiently. "Many times systems aren't integrated well, or systems are not current, so they haven't been updated with information or content from previous interactions that have taken place with the borrower where information has been stored in other systems." is can understandably lead to frustration and confusion for all parties—not ideal during an already stressful situation such as delinquency or default. Jacob Williamson, VP of Single-Family Real Estate for Fannie Mae, emphasized the importance of building trust between borrowers and servicers. at trust begins early in the process and carries on throughout the lifecycle of a loan. "e ease of how a borrower gets a question/inquiry resolved, how effective a servicer's website is in providing helpful and easy-to-understand information, or how well a servicer conveys empathy and service are all experiences that quickly determine a borrower's trust," Williamson said. When this trust is established right out of the gate, Williamson suggested that they are more likely to be responsive should they become at risk of default. Williamson also stressed the importance "e ease of how a borrower gets a question/ inquiry resolved, how effective a servicer's website is in providing helpful and easy- to-understand information, or how well a servicer conveys empathy and service are all experiences that quickly determine a borrower's trust." —Jacob Williamson, VP of Single-Family Real Estate, Fannie Mae